The Irish funds industry continues to be an incredible success story. The assets administered in Ireland have more than trebled in size since the middle of 2009. In the 25 years since the first fund was established in the IFSC, over 800 global fund promoters have chosen Ireland as a fund servicing centre and/or fund domicile, creating jobs right across the country, with leading funds servicers now in Kilkenny, Cork, Limerick, Galway, Sligo, Waterford, Wexford and Drogheda as well as Dublin! The IFSC is now a national industry and Ireland is a true Centre of Excellence, with Irish investment funds now sold to investors in over 70 countries across the globe.
One of the most exciting opportunities for Ireland is to combine its great success in investment funds and its success in attracting Technology FDI and become a leading global hub for financial technology (development and support) – ‘FinTech’ offers huge opportunities for Ireland!

However, the industry cannot afford to be complacent. Competition is fierce amongst the major fund domiciles to attract new managers from all parts of the globe to establish funds and to launch the latest fund product from existing promoters. Being competitive is, therefore, the key to being able to attract the new products necessary to enable the domicile to thrive.

Speed to market, excellence and innovation are the keys to success
Speed to market and new product innovation are critical to the continued success of the funds industry in Ireland and to maintaining or growing the numbers employed in the industry here. There is much anticipation about the potential for growth arising from the proposed new Irish Collective Asset-Management Vehicle or ICAV which is now expected to be in place before the end of the year. This product will be truly global in nature and will be a great addition to the Irish product range. However, while we have been toiling away on the ICAV, our nearest neighbour, the UK, has been looking over at the success of Ireland (and other domiciles) and looking at increasing its competitiveness as a domicile and servicing location. In its 2013 Budget, the UK Government announced its strategy for the UK investment management industry, with ambitions to be a leading product domicile as well as management centre. The UK is Europe’s leading fund management location and the connectivity between Ireland and the UK (same time zone, language, common law legal system, etc) has been a primary reason why Ireland has been a very attractive location for managers based in the UK. However, Ireland needs to remain very focused on speed to market and innovation if it is to continue to be the product domicile and servicing location of choice for UK–based managers.

George Osborne, Chancellor of the Exchequer, said: “As part of this Government’s objective to equip the UK for success in the global race, I am committed to making the UK one of the most competitive places in the world for the investment management sector.”

While the UK was traditionally known as a centre of fund management, it is now actively promoting itself as a location for the domiciliation and administration of investment funds. The FCA has been very proactive throughout the implementation period for the Alternative Investment Fund Managers Directive, with the result that a large number of UK managers have sought authorisation for their AIFMs in the UK rather than looking abroad. With Ireland’s deep knowledge of the Alternatives Fund Industry, we should not allow a situation to arise whereby we are not the most attractive location for UK managers to locate or outsource fund activities.

As well as London, the UK industry is actively promoting other UK fund management centres which offer potentially lower cost operating environments than London. If there is a cloud on the horizon for the UK as a location for investment funds, it relates to the continued uncertainty about the UK’s commitment to the EU and David Cameron’s promise of an in/out referendum in 2017.

Pro-enterprise Government
At the recent IFIA annual global funds conference, over 300 delegates heard An Taoiseach Enda Kenny say that: “We in Government look to the Industry to continue to grow as impressively as it has over recent years; to invest; to generate new jobs and wealth; to continue to play a leading part in our recovery”.

Given the growing competitive threat, we simply cannot afford to rely on our past successes. The funds industry can continue to grow and thrive in Ireland, creating new employment opportunities and more indigenous support companies. However, a renewed “Team Ireland” approach where all stakeholders are working together to support and grow the industry is needed to ensure that Ireland maintains its position as a leading domicile in the global funds industry.